Zeev's Turnips Patch-No Politics (ZEEV)

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Towards the end of the housing bubble, many of the lenders booked late payment interest owed as additional "profit." That "profit" had little to do with real cash flow, but merely an accounting trick to cook the books. All those CDS tranches started going down after early default rates shot up. That was the sign that the bubble ran out of "greater fools."